Sobha Developers Ltd is one of the renowned developers in Bangalore. They launched about eight projects (mix of commercial and residential) in 2013 and have also given deliveries of many residential projects. J C Sharma, vice chairman and managing director, Sobha Developers Ltd, in conversation with Magicbricks.com’s Neha Nagpal says that when all other metro cities were struggling with fluctuating real estate sales, Bangalore showcased a stable picture. Excerpts from the interview:
How did the real estate market in Bangalore performed in the year 2013?
The market has performed well in 2013 vis-à-vis the previous year. Despite the economic downturn and inflationary pressures, the market continued to grow at a healthy rate. In the current financial year (until September), Bangalore alone has accounted for 18 per cent of the nation-wide sales, second only to NCR (33 per cent). We expect the trend to continue in the coming year and Bangalore to remain the most lucrative real estate market.
Which areas are expected to see maximum real estate development in the coming year 2014? Why?
Bangalore market, as a whole has witnessed growth. Apart from the existing real estate corridors that have seen new project launches, regions such as the North, North-East and South-East Bangalore are also seeing an increase in the number of launches. The same can be attributed to the rate at which the infrastructure development in the city is taking place. With the advent of the outer-ring road and the Bengaluru International Airport, these real estate pockets have gained prominence.
Which were the most preferred property type, configuration and budget ranges across the city in the year 2013? Was the supply aligned according to the demand?
In Bangalore, 2BHK and 3BHK apartments have garnered the interest of individuals looking to invest in the Bangalore real estate market. This is evident from the business turnover of Rs 1,271 crore and Rs 1,978 crore for 2 and 3 BHK apartments, respectively, during Q2, FY ’14. 3 BHKS had the highest market share of 38 per cent in the last quarter. Properties in the range of Rs 25 to 50 lakh and Rs 50 lakh to 1 crore dominated the sales in the second quarter of FY ‘14.
What was the volume of sales and stock in the year 2013 vis-à-vis the last year? Is there any un-sold inventory in the city that might impact real estate prices in the coming year?
During the time period of January 2013 to September 2013, 22,293 units were sold in Bangalore v/s 25,971 units in the corresponding period last year. At the end of Q2 FY ’14, the unsold inventory in the city was 110.8 million square feet implying 30 months inventory.
What are the five things you wish to happen in the real estate sector in 2014?
The five things we wish for the sector in 2014 are availability of land parcels at affordable rates, faster approvals, availability of loans, infrastructure improvement and a stable government. We also trust the government to ease the FDI regulations, thereby allowing for the industry to boom and be privy to the latest developments world-wide.
Source : TOI